The Marketing Game Plan

THE MARKETING GAME PLAN

6.1 The Game Plan 6.2 Entertainment and Sports Strategies

6.3 Mapping the Plan

Chapter 6

Lesson 6.1

The Game Plan

Goals Explain the difference between marketing

tactics and strategies.

Discuss the importance of planning to stay ahead of the competition.

MARKETING TACTICS

Marketing Research showed: Nike was falling behind

Corporation Goal: be #1 in their market.

Nike needs to differentiate itself from Adidas, the market leader.

Tactics First, Then Strategies tactic

the way a product or service is differentiated in the minds of customers from other competing products or services

“Competitive Mental Angle” ○ Competitive – stand out from the rest○ Mental - in the minds of consumers

NuBoard – Devised a tactic to build brands and engage customers by using bags as mini-billboards

Tactics First, Then Strategies Tactics Require:

Extensive knowledge & involvement with Customers

Tactics must be developed by people who have their minds open to the idea of exploring what customers think. most effective tactics developed by salespeopletactics can work their way from salespeople

to upper management

Tactics First, Then Strategies strategies

the process by which tactics are implemented

NuBoard – strategy of selling ad space on the mobile mini-billboard and adhered them to seats to advertise for their clients.

Ritz Carlton○ Tactic – appeal to only the wealthiest customers○ Strategy - partner with another brand name “Bulgari”

(Fine Jewelry) for the new ulta-premium properties.

What is the difference between a tactic and a strategy?

Tactic – the way a product is differentiatedStrategy – process by which tactic is

implemented

Tactic: competitive mental angleStrategies: implementing tactics

BEATING THE COMPETITION “Winning the game” in business means

gaining market share over competitors and making a profit.analysis, tactics, strategies devised & used requires depth of competitive knowledge

--

What Information is Needed?• marketing intelligence:

− info gathered about competitors

Marketing Intelligence Pricing

very important to customersthe prices of competitors can influence buying

decisions

• Distribution – marketers need to make the product

purchase convenient for customers– place utility improved

Product/Service Managementknowing the product/service offerings of

competitors can help a business determine how to differentiate its products

Goal: offer additional choices to consumer, not just follow their competitions lead.

• Promotional Efforts – promotional competitive analysis reveals:

• the product characteristics emphasized by competitors

• target customers• promotional budgets

Finding the Information Marketing information is critical to help

anticipate future moves of the competition.

1. internet efficient searching leads to effective results

○ company name○ keywords

2. observations combining the insights of a variety of salespeople

can provide valuable competitive information

3. trade shows major events where people in a related

industry meet to○ show their products○ exchange ideas○ learn about the latest trends

valuable source of competitive information

4. customers customer feedback is critical for fine tuning

marketing plans can provide competitive information

Give three examples of marketing intelligence information that might be collected by a movie theater.

Mystery customer to assess competitor’s:food offerings, price points, seating type, cleanliness, environment, arcades, etc.

Lesson 6.2Entertainment and Sports Strategies Goals Explain the importance of learning from

customers. Discuss sports marketing strategies. Discuss entertainment marketing

strategies.

DATA-DRIVEN DECISIONS

marketing plana document that describes the tactics and

strategies that will be used to market the product or service

raw data the facts and recorded measures

that have been gathered --

Interpretation interpretation

explaining the information so that it has meaning drawing conclusions that relate to the defined

marketing research problem

Gathering an adequate amount of data and then transforming it into useable forms (such as summaries, charts, or graphs) simplifies the decision-making process.

Applied Research applied research

conducted to solve specific problems

Marketing ConceptFocuses on customers, long-term profitability and

coordination of all 6 core standardsApplying what is learned from marketing research

to planning is a critical step to successful marketing

Applied Research Peter Drucker, Management Guru

Defines Marketing as: “The whole firm, taken from a customer’s point of view.”

1.Carefully learn from the customer (research)2.Use what is learned to attract those customers3.Then engage them with product offerings

Applied Research touchpoints

points at which business makes contact with customers

web site visits

e-mails

phone calls

advertisements

one-on-one

sales pitches

Explain what Peter Drucker’s definition of marketing means. (Page 153)

Marketing focuses the purpose of the business on what the customer wants and needs.

SPORTS MARKETING STRATEGIES Fans are necessary for the

longevity of a team.

Attracting fans to watch the game (in person or on TV) and motivating them to buy related merchandise in order to generate profit.

Using research to form the right tactics to attract these fans is a challenge for teams.

Fans Rule Competition for fans is fierce.

Adidas and Nike have different tactics and strategies to compete for soccer fans.

Adidas provides soccer balls for the World Cup and promotes customizable soccer cleats.

Nike is filling a niche for street-ready soccer merchandise and is sponsoring a number of major international soccer teams.

What drives professional sports teams’ marketing plans? Explain why.

The marketing plans focus on:○ attracting fans to watch games in person or on TV○ motivating them to buy related merchandise ○ in order to generate profit.

ENTERTAINMENT MARKETING STRATEGIES

The movie and music industries use many of the same strategies used in sports marketing to attract customers.

Determining the new tactic first and then figuring the strategies that will drive sales is the key.

Capitalizing on Controversy Sony carefully developed

a tactic and a strategy for promoting The DaVinci Code.Addressed some of the religious

outrage by providing a website for religious dialogue

Forego usual advanced screenings/interviews○ avoided overexposure prior to the movie’s release ○ add mystery in the minds of consumer

Concert Pricing Strategies

Indoor concerts - more economical to produceLess sound and other equipment = less costLarge Sell-Outs make good profit but have high costs Smaller indoor concert may be more profitable even

with smaller crowd due to low costs.

Ticket Prices INCREASEDBetween 1995-2006 – Prices jumped over 100%Less then $25 to Over $50 in ten year span.

Concert Pricing Strategies

Concert Venues & Radio Stations ChangedLarge % now owned by national companies rather

than local owners.

Industry consolidation has lead to decreased competition = they control the pricing. Declining profits are prompting concert promoters to

re-evaluate pricing strategies.

$9 convenience fee; $4 processing fee; $2 facility fee

Music with Your Coffee? Starbuck’s Entertainment

connects Starbuck’s brand with entertainmentBy 2005, Starbucks sold 3.5 million CDs.

Starbucks’s beveragesIn 2012, Test Markets for Wine & Beer

Why would a coffee shop add entertainment items to its menu?

○ To increase revenues

○ A way of “selling a lifestyle”(Differentiating itself from their competition)

Lesson 6.3

Mapping the Plan

Goals Explain how marketers determine

direction and focus for a marketing plan. List and describe the components of a

marketing plan.

KNOW WHERE YOU ARE HEADED Primary importance: reiteration of the

company’s Mission Statement.

mission statementidentifies the nature of the business and the

reason it exists

All tactics and strategies in your plan should be built around the mission statement.

A Sense of Direction mass market

a broad group of customers

product portfolioall the products a company has available at any

one time

test marketingwhere the sales potential for a new product is

tried in a small market prior to its final release

Explain the importance of a company’s mission statement to the marketing plan.

The mission statement provides focus for the company’s marketers and planners as they develop tactics for new products and services.

THE PLAN The marketing plan is a detailed document

that further provides a detailed description of how the tactics and strategies will be implemented.

Components of a Marketing Plan A marketing plan should be guided by the current and

future needs of customers.

Analysis The Mission Statement

○ The marketing plan must be in agreement with the mission statement.

Marketing Information○ Information is gathered, analyzed, interpreted and used to make

business decisions.

The Tactic○ describes product or service differentiation○ should pinpoint a gap that is not be filled by another product or

service

Strategy (1 of 2) Product/Service

○ the identified need is the basis for the development of the product or service

The Distribution System ○ describes how the product or service will be made

available to customers

Pricing ○ The price must be set where revenues will be

maximized to cover all costs and provide a profit.

Strategy (2 of 2)

Promotional Strategies○ how the product will be positioned in the minds of

customersadvertisingpublicitysales promotionpersonal selling

Financing ○ disclosure of all expected costs and revenues○ might indicate need for additional funding

Risk Management○ outlines possible risks and strategies for minimizing

the risks

Implementation

Timeline start with completion date and plan backwardsspecify event sequencing

Assignments of Responsibilityspecify who is responsible for each component of the plan

Internal Communication Systemdefine how all key organizational members will be kept informed

of the plan (provide a feedback mechanism)

Selling defines how direct sales will be handled

Review and Evaluation define mileposts for progress checks of the plan

Look to the Future Organizations should have future products

planned while current products are still experiencing strong sales.

Marketing plans require periodic revisions.

Why must the marketing plan include intervals for review and evaluation?

Review and evaluation are necessary to ensure the plan is on track and to make adjustments if/where necessary.